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Home My WebLink AboutOct 23CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA October 23, 2013 A. CALL TO ORDER: B. ROLL CALL: LINDSTROM ____ HARRIS ____ GOSLINE ____ LONG ____ MERCER-TAYLOR ____ STAFF PRESENT: FISCHER ____ C. PRESENTATIONS: 1. Annual Presentation from Ramsey County Sheriff Matt Bostrom 2. 2013 Sustainability Fair from University of Minnesota Students Shannon Boehm and Isaac Schwartzbauer D. APPROVAL OF MINUTES: October 9, 2013 E. PUBLIC HEARINGS: 1. F. CONSENT AGENDA: 1. General Disbursements through 10/17/2013: $135,937.48 Payroll through 10/15/2013: $14,967.53 2. Appointment of Ahmed Hassan to Human Rights Commission 3. Curtiss Field Drainage Feasibility Study 4. Budget Amendment and Funds Transfer for Emerald Ash Borer Special Revenue Fund 5. Easement Addendum with University of Minnesota G: POLICY ITEMS: 1. Sale of $720,000 General Obligation Equipment Certificates, Series 2013B H. INFORMATION/ANNOUNCEMENTS: I. COMMUNITY FORUM: J. ADJOURNMENT: CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue MINUTES October 9, 2013 A. CALL TO ORDER: 7:00PM B. ROLL CALL: LINDSTROM _X_ HARRIS _X_ GOSLINE _X_ LONG _X_ MERCER-TAYLOR _X_ STAFF PRESENT: FISCHER _X_ GIGA _X_ OLSON _X_ MCDOWELL-POEHLER _X_ C. PRESENTATIONS: 1. Roseville Superintendent of Schools – John Thein Superintendent Thein provided an update from the school district and the attached presentation as well as answered questions from the Council. D. APPROVAL OF MINUTES: September 11, 2013 APPROVED E. PUBLIC HEARINGS: Keith Gosline Moved, Approval 5-0 1. 2013 Pavement Management Project Assessments -City Engineer Kris Giga presented the staff report, resolution, and attached presentation on the upcoming assessments for the 2013 Pavement Management Project and also answered questions from the Council. -Mayor Lindstrom opened the Public Hearing at 7:39PM. -Shawn Hubert (1525 Iowa): Thanked City staff for their work on the project. He asked questions about crosswalks in various locations along Arona as they were originally planned but do not seem to have been done. City Engineer Giga and Mayor Lindstrom both addressed this issue, and Mayor Lindstrom advised that crosswalks have been withheld for the time being and will be considered after neighborhood conversations in the near future. -Kari Kilbride (1522 Idaho): Kari also addressed the crosswalk issue. She was seeking to gain more information on the pros and cons of crosswalks and how they would impact the area. She also expressed concerns about traffic speeds and control on Arona and inquired about the interest rate for the assessments. City Administrator Fischer explained the interest rate question which is 2% above the sale rate of the bonds to cover bond sale costs and continued administrative costs associated with the bonds. -Lisa Schiltgen (1375 California): Lisa expressed concern over liquidated damages by the contractor and their impact over time. City Administrator Fischer and Assistant Attorney McDowell-Poehler explained that any possible damages would be allocated across all assessments for the project. Ms. Schiltgen also expressed concerns over the accuracy of the costs of the project. City Engineer Giga, Assistant Attorney McDowell- Poehler and City Administrator Fischer provided answers and indicated Ms. Schiltgen’s concerns would be researched and addressed. -Mayor Lindstrom closed the Public Hearing at 8:18PM. Council directed staff to notify the contractor of liquidated damages due to time overruns on the project. F. CONSENT AGENDA: Beth Mercer-Taylor Moved, Approval 5-0 1. General Disbursements through 10 /4/2013: $312,311.62 Payroll through 9/30/2013: $32,382.72 2. Approval of City Licenses 3. Appointment of Michael Breen to Parks & Recreation Commission 4. Payment for 2013 Pavement Management Project 5. Resolution Authorizing an Interfund Loan for TIF District 2-1 6. Authorization to Enter into HGAC Cooperative Purchasing Contract for Fire Equipment G: POLICY ITEMS: Beth Mercer-Taylor Moved, Approval 5-0 1. Resolution Approving “No Parking” Zones Around Falcon Heights Elementary -Councilmember Chuck Long requested that this item be moved from the consent agenda item to a policy item. Councilmember Long provided background information and an update on the issue. -Julie Schultz, Safety Coordinator for Falcon Heights Elementary, also addressed the Council on this issue. H. INFORMATION/ANNOUNCEMENTS: Councilmember Beth Mercer-Taylor -Provided an update on the upcoming Environment Commission meeting and Clean Energy Resource Team grant. Councilmember Chuck Long -Provided an update on the Human Rights Commission meeting on October 7, 2013. -Provided an update on the community education dialogue event regarding Communities for a Lifetime. Councilmember Keith Gosline -Provided an update on the recent NYFS event. City Administrator Bart Fischer -Updated the City Council on the Fire Department Open House on October 5, 2013. Mayor Peter Lindstrom -Announced the upcoming Community Campus meeting with the University of Minnesota. -Announced the upcoming University Grove meeting that will be held on October 15, 2013 at 7:30PM at City Hall. I. COMMUNITY FORUM: J. ADJOURNMENT: 8:45PM 10/10/2013 1 Quality Teaching and Learning for All...Equity in All We Do Roseville Area Schools October 9, 2013 Quality Teaching and Learning for All...Equity in All We Do 623 Enrollment First Day 2013 First Day 2012 Increase% Increase District 7,152 6,984 168 2.4% With Harambee 7,587 6,984 603 8.6% Quality Teaching and Learning for All...Equity in All We Do 623 Enrollment -Elementary First Day 2012 First Day 2013 Increase/ Decrease %Change Brimhall 693 720 27 3.9% Central Park 464 483 19 4.1% Edgerton 477 501 24 5.0% Falcon Heights 458 478 20 4.4% Little Canada 424 483 59 13.9% Emmet Williams 509 503-6-1.2% Parkview 574 584 10 1.7% Sub-Total 3,599 3,752 153 4.3% Harambee-435 435 100% Total 3,599 4,187 588 16.3% Quality Teaching and Learning for All...Equity in All We Do 623 Enrollment -Secondary First Day 2012 First Day 2013 Increase/ Decrease %Change Parkview Center 7-8 165 171 6 3.6% RAMS 870 911 41 4.7% RAHS 2,214 2,194-20-0.1% FAHS 136 137 1 0.1% Total Secondary 3,385 3,400 15 0.01% Total Elementary without Harambee 3,599 3,752 153 4.3% Total Elementary with Harambee 3,599 4,187 588 16.3% Total District 2013 6,984 7,587 603 8.6% 10/10/2013 2 Quality Teaching and Learning for All...Equity in All We Do 623 Demographic Data as of 9/16/13 Ethnicity Number of Students% White 3,927 51.8% Asian 1,566 20.6% Black 1,231 16.2% Hispanic 808 10.7% Native American 55.07% Free and Reduced 3,408 44.9% English Language 1,053 13.9% Quality Teaching and Learning for All...Equity in All We Do Levy Referendum Renewal •Why Now? •Current Referendum Expires 6/30/14 •When? •Election –November 5, 2013 •What is Request? •Renewal of Current Referendum •Will Referendum Change Property Taxes? •No, not in 2015 •Where Can Citizens Find Additional Information? •www.isd623.org Fast Facts Comparison of School Taxes By District Quality Teaching and Learning for All...Equity in All We Do We Are Proud Of: •Our students, families and staff •Our schools and options •Our programming •Our partnerships •Our communities 10/10/2013 3 1 2013 Pavement Management Project Assessment Hearing October 9, 2013 Special Assessments Rate based on project costs Assessment frontage based as approved in feasibility report –Modified once construction limits were established in the field No assessment for storm sewer, watermain or sanitary sewer Assessment Policy-Streets Assessment rate based on lot frontage at building setback Corner lots assessed 100% long, 0% short side Mill & Overlay/Reclaim Assessment Rates –Residential -40% of project cost –Commercial/Multi-unit residential -60% of project cost 2 Assessment Policy-Alleys Assessment rate based on footage along alley Alley Improvement Assessment Rates –Residential, Multi-unit residential, Commercial - 90% of project cost Traffic study completed along alleys which also serve non-residential purposes Project Funding Construction + Engin eer ing Assess ments C RWD MSA TIF Cit y Street s Tot al$ 71 8,917.84 $ 306,57 0.93 $ 150,0 00.00 $ 1 35,96 3.75 $ 126.383.17 Alley Tot al$ 8 6,161.31 $ 77,54 1.46 $ 8,619.8 4 Storm Tot al$ 35 6,036.25$ 142,0 00.00 $ 2 14,03 6.25 San i tary Total$ 2,548.71 $ 2,548.7 1 Pr i vate Sanitary Tot a l*$ 2,420.50 $ 2,420.5 0 GRAN D TOTAL$ 1,16 6,084.61 $ 386,53 2.89 $ 14 2,000.00 $ 150,0 00.00 $ 3 50,00 0.00 $ 137,551.72 * One prop erty owne r chose t o rep l ace their s ervice. 3 Assessment Rate Comparison Pe r foot assessme nt rate Feasibility Report Project C osts Street Improvements Comm ercial/m ulti-unit$ 56.0 7 $ 48.9 9 Residential$ 37.3 8 $ 32.6 6 Califor nia Al ley Improvements ("Super Ame rica" alley-Albert to H amlin e) Comm ercial$ 40.4 7 $ 34.4 7 Residential$ 36.3 2 $ 30.9 3 Crawford Al ley Imp rovements ("Falcon Crossing" alle y-Snel ling Svc Dr to Arona) Comm ercial$ 115.78 $ 58.4 1 Residential$ 10.7 6 $ 6.78 All Assessments Tonight 7 years 4.1 % annual interest Collected by Ramsey County with taxes Assessment Deferral Homestead property Age 65 or older, or retired by virtue of a disability Payment would be a hardship Assessment will accrue interest Application available at City Hall Schedule October 9 Assessment Hearing October 10-Prepayment period at November 8 City Hall November 15 Certification of assessments to Ramsey County 4 2013 Pavement Management Project Open Assessment Hearing Recommended Council Action: Approval of resolution adopting and confirming Assessments for 2013 Pavement Management Project REQUEST FOR COUNCIL ACTION The City That Soars! Item General Disbursements and Payroll Description General Disbursements through 10/17/2013: $135,937.48 Payroll through 10/15/2013: $14,967.53 Budget Impact Attachment(s) General Disbursements and Payroll Action(s) Requested Staff recommends that the Falcon Heights City Council approve general disbursements and payroll. Meeting Date October 23, 2013 Agenda Item Consent F1 Attachment General Disbursements and Payroll Submitted By Roland Olson, Finance Director Families, Fields and Fair __________________________ REQUEST FOR COUNCIL ACTION The City That Soars! Item City Commission Appointment Description I recommend Ahmed Hassan be appointed to the Falcon Heights Human Rights Commission. Budget Impact N/A Attachment(s) Ahmed Hassan’s application. Action(s) Requested Approval of the above appointment. Meeting Date October 23, 2013 Agenda Item Consent F2 Attachment Application Submitted By Mayor Peter Lindstrom Families, Fields and Fair __________________________ ‐‐‐‐‐Original Message‐‐‐‐‐ From: Please Do Not Click Reply [mailto:support@govoffice.com] Sent: Thursday, October 10, 2013 10:46 AM To: Bart Fischer Subject: City Commission Application (form) has been filled out on your site. Your Site has received new information through a form. Form: City Commission Application Site URL: www.falconheights.org ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Date: Oct. 10, 2013 Name: Ahmed A Hassan Street Address: City, State, Zip Code: Phone Number: Additional Phone Number: Email: How Long at Above Address?: 8 years In Which Capacity Would You Like to Serve?: As a member. What is the Reason You Would Like to Serve?: I like to help. Volunteering is a great way to help. List Prior (Previous) Public Service: 1. Current chairperson of the Saint Paul Public Schools (SPPS)District Parent Advisory Committee . 2. Facilitator of SPPS District Parent Academy 3. Coordinator of a number Community Projects (now at different planning stages) Other Relevant Background (Other Comments): Not clear ... what? Do Not Click Reply ‐ This e‐mail has been generated from a super form. REQUEST FOR COUNCIL ACTION The City That Soars! Item Approve the Feasibility Report for Curtiss Pond Improvement Project Description Capitol Region Watershed District (CRWD) representatives presented the draft Curtiss Pond Improvement Project Feasibility Study at the City Council meeting on September 11, 2013. Several questions and comments were received, and in general, there was support for the project as recommended in the Study. No changes to the study have been made since the presentation on September 11th. Discussions have been initiated with the State Fair and Mn/DOT regarding their potential involvement in the project. The CRWD would like the City Council to formalize the Feasibility Report before beginning detailed planning on the project. The CRWD Board also approved the Feasibility Report at their October 2, 2013, meeting. Budget Impact This project is being led by the CRWD. The proposed project cost is estimated at $536,000, including engineering and contingency. CRWD has requested that the City contribute $200,000 to the project, which is accounted for in the 2014 Draft Budget. A cooperative agreement is being drafted, and will be presented later this fall to both the CRWD board and the City Council with details on cost participation, project engineering, construction management, and maintenance. Attachment Due to the large size of the Feasibility Report, a copy is available for viewing at Falcon Heights City Hall Action(s) Requested Approve the Feasibility Report for the Curtiss Pond Improvement Project and direct staff to work with Capitol Region Watershed District to implement the project. Meeting Date October 23, 2013 Agenda Item Consent F3 Attachment Due to the large size of the Feasibility Report, a copy is available for viewing at Falcon Heights City Hall Submitted By Kristine Giga, Civil Engineer Families, Fields and Fair __________________________ REQUEST FOR COUNCIL ACTION The City That Soars! Item Budget amendment and transfer of funds for Emerald Ash Borer Special Revenue Fund 205 Description The city has participated in the Emerald Ash Borer grant during 2013 and will continue in 2014. The 2013 budget sheet for the Emerald Ash Borer Special Revenue Fund 205 has a spreadsheet error on it. This error was not noticed until recently. There is listed a Transfer In of $125,650 to fund this grant, but there is no fund from which the transfer of funds is to come from. It originally was to come from the Infrastructure fund and to provide funding until the grant was completed and reimbursement received from the state. Recently, we learned that we can get reimbursement from the State for all work completed in 2013 before the 2013 year end and not have to wait for the end of 2014. The solution is to amend the budget and correct with a new transfer of funds to provide limited operating funds, but not at the level previously listed. When the grant is completed, the balance can be closed back to the infrastructure fund. Staff recommends amending the budget line items and changing the dollar amount of the transfer to be only $20,000 and reflect the following entries: Revenue: transfer in 205-39200 $20,000 Expense: transfer out 419-4419-97000 $20,000 Budget Impact Budget amendment change to reflect the new transfer of funds Attachment(s) N/A Action(s) Requested Staff recommends a budget amendment to the budget line items in the Emerald Ash Borer Special Revenue fund 205 and establish the dollar amount of the transfer to be $20,000. Meeting Date October 23, 2013 Agenda Item Consent F4 Attachment N/A Submitted By Roland Olson, Finance Director Families, Fields and Fair __________________________ REQUEST FOR COUNCIL ACTION The City That Soars! Item Approval of First Amendment to Easement Granted in 1976 to City of Falcon Heights for Street and City-Owned Utilities in the Grove Description On October 28, 1976, the City of Falcon Heights and University of Minnesota entered into an easement agreement in relation to the City providing municipal services to the University Grove Neighborhood. Upon recent review of the easement agreement, it was noticed that language was lacking addressing an easement needed by the City relating to an existing sanitary sewer line and storm sewer line in the Grove. This amendment “cleans up” the original easement agreement and adds language recognizing those sanitary and storm sewer lines. The easement amendment was reviewed by the City Administrator, City Engineer, Public Works Director, City Attorney and University Grove Association President. Staff recommends approval of the First Amendment to the Easement Agreement. Budget Impact N/A Attachment(s) University Agreement #E-67025 – First Amendment to Easement Agreement. Action(s) Requested Approval of First Amendment to Easement Granted in 1976 to City of Falcon Heights for Street and City-Owned Utilities in the Grove and authorizing the Mayor and City Administrator to sign any associated documents. Meeting Date October 23, 2013 Agenda Item Consent F5 Attachment University Agreement #E-67025 – First Amendment to Easement Agreement Submitted By Bart Fischer, City Administrator Families, Fields and Fair __________________________ University Agreement #E-67025 FIRST AMENDMENT to EASEMENT AGREEMENT THIS FIRST AMENDMENT TO EASEMENT AGREEMENT (“First Amendment”) is entered into on the date of last signature below by and between Regents of the University of Minnesota, a Minnesota constitutional corporation (“Grantor”) and the City of Falcon Heights, a Minnesota municipal corporation (“Grantee”). WHEREAS, Grantor and Grantee are parties to an Easement dated October 28, 1976 (the “Agreement”) in relation to Grantee’s provision of municipal services to certain homes located in Auditor’s Subdivision No. 71 and Auditor’s Subdivision No. 90, Ramsey County, Minnesota (“Grove Homes”); WHEREAS, a portion of the easement area described in the Agreement has been vacated by the Grantee, is no longer a public right-of-way, and should be removed from the easement area; WHEREAS, Grantor and Grantee wish to designate additional easements for sanitary sewer and storm sewer service to the Grove Homes; WHEREAS, the parties desire to amend the Agreement as set forth in this First Amendment; and WHEREAS, capitalized terms used herein but not otherwise defined shall have the meanings given them in the Agreement. NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Except as specifically amended hereby, the Agreement is and remains in full force and effect. 2. That portion of the easement area described as follows and depicted on Exhibit A is no longer a part of the easement area: Lot D, North of Folwell Avenue as constructed, Auditor’s Subdivision #90. 3. Grantee is hereby granted a permanent easement over, across and under the property described and depicted on Exhibit B (the “Additional Sanitary Sewer 1 Easement Area”). The Additional Sanitary Sewer Easement Area shall be used only for the purpose of providing municipal sanitary sewer service to the Grove Homes. The surface of the Additional Sanitary Sewer Easement Area includes a paved path and a grassy area. The grassy area is maintained by owners of the Grove Homes. Grantee will be responsible for promptly restoring the grassy area (and paved path) to Grantor’s reasonable satisfaction in the event Grantee does any work in the Additional Sanitary Sewer Easement Area. 4. Grantee is hereby granted a permanent easement over, across and under the property described and depicted on Exhibit C (the “Additional Storm Sewer Easement Area”). The Additional Storm Sewer Easement Area shall be used only for the purpose of providing municipal storm sewer service to the Grove Homes. The surface of the Additional Storm Sewer Easement Area is a grassy area maintained by owners of Grove Homes; however, Grantee will be responsible for promptly restoring the grassy area to Grantor’s reasonable satisfaction in the event Grantee does any work in the Additional Storm Sewer Easement Area. 5. This First Amendment may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 6. Each of the undersigned parties represents and warrants that it has full authority to enter into this agreement, and each individual signing this First Amendment on behalf of a party hereby represents and warrants that he or she has full authority to sign on behalf of and to bind that party thereby. 7. Exhibit A, Exhibit B and Exhibit C attached hereto are hereby incorporated by reference and hereby made a part of this First Amendment. IN WITNESS WHEREOF, Grantor and Grantee execute this First Amendment. Regents of the University of Minnesota City of Falcon Heights By: By: Name: Name: Title: Title: Date: Date: 2 EXHIBIT A Vacated Easement Exhibit B Additional Sanitary Sewer Easement Area EXHIBIT C Additional Storm Sewer Easement Area REQUEST FOR COUNCIL ACTION The City That Soars! Item Approval of Sale of $720,000 General Obligation Equipment Certificates, Series 2013B Description To provide sufficient financing for the Fire Department Ladder Truck, the City needs to bond. The City has contacted Ehlers and Associates to prepare a presale report for the $720,000 General Obligation Equipment Certificates, Series 2013B. This report is attached. Staff recommends approval of the resolution providing for the sale of these bonds and recommends retaining Ehlers and Associates Inc. of Roseville as its independent financial advisor for the Bonds and recommends Ehlers be authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9). Budget Impact The attached Ehlers report shows the budget to levy impact. These bonds and the payments or them have been discussed and are accounted for in the 2014 Draft Budget. Attachment(s) Ehlers and Associates Pre-Sale Report for $720,000 General Obligation Equipment Certificates, Series 2013B. Resolution 13-30. Action(s) Requested Staff recommends approval of the Resolution Providing for the Sale of $720,000 General Obligation Equipment Certificates, Series 2013B and recommends the City retain Ehlers and Associates Inc. in Roseville as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9). Meeting Date October 23, 2013 Agenda Item Policy G1 Attachment Ehlers and Associates Presale Report Resolution 13-30 Submitted By Bart Fischer, City Administrator Roland Olson, Finance Director Families, Fields and Fair __________________________ CITY OF FALCON HEIGHTS COUNCIL RESOLUTION October 23, 2013 No. 13-30 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - A RESOLUTION PROVIDING FOR THE SALE OF $720,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES, SERIES 2013B A. WHEREAS, the City Council of the City of Falcon Heights, Minnesota has heretofore determined that it is necessary and expedient to issue the City's $720,000 General Obligation Equipment Certificates, Series 2013B (the "Bonds"), to finance the purchase of public safety equipment for the City; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Certificates and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at 7:00 p.m. on November 13, 2013, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Certificates and to execute and deliver it on behalf of the City upon its completion. ADOPTED by the Falcon Heights City Council this 23rd day of October, 2013. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Peter Lindstrom, Mayor October 23, 2013 LINDSTROM ____ In Favor Attested by: ________________________ GOSLINE Bart Fischer HARRIS ____ Against City Administrator LONG October 23, 2013 MERCER-TAYLOR October 23, 2013 Pre-Sale Report City of Falcon Heights, Minnesota $720,000 General Obligation Equipment Certificates, Series 2013B Prepared by: Shelly Eldridge Financial Advisor And Nick Anhut Financial Specialist Presale Report City of Falcon Heights, Minnesota October 23, 2013 Page 1 Executive Summary of Proposed Debt Proposed Issue: $720,000 General Obligation Equipment Certificates, Series 2013B Authority: The Certificates are being issued pursuant to Minnesota Statutes, Chapters 412 and 475. The Certificates will be general obligations of the City for which its full faith, credit and taxing powers are pledged. The Certificates count against the City’s General Obligation Debt Capacity Limit of 3% of market value. Only debt supported by 100% tax levy is subject to this limit. Including the proposed issue, the City has over $9 million debt capacity remaining. Purposes: The proposed issue includes financing for the purchase of public safety equipment. The City will contribute $70,000 in funds on hand to reduce the borrowing amount.  Debt service will be paid from ad valorem property taxes levied in Fiscal Years 2014 - 2022. Term/Call Feature: The Certificates are being issued for a 9-year term. Principal on the Certificates will be due on February 1 in the years 2015 through 2023. Interest is payable every six months beginning August 1, 2014. The Certificates maturing February 1, 2022 will be subject to prepayment at the discretion of the City on February 1, 2021 or any date thereafter. Bank Qualification: Because the City is issuing less than $10,000,000 in the calendar year, to include conduit debt, the City will be able to designate the Certificates as “bank qualified” obligations. Bank qualified status broadens the market for the Certificates, which can result in lower interest rates. Rating: The City’s most recent bond issues were unrated. Because of the size and duration of the Certificates, the cost associated with obtaining a rating will be more than offset by the resulting lower interest rates. The City will request a new rating for the Certificates from Standard & Poor’s. If the winning bidder on the Certificates elects to purchase bond insurance, the rating for the issue may be higher than the City’s bond rating in the event that the bond rating of the insurer is higher than that of the City. Method of Sale/Placement: In order to obtain the lowest interest cost to the City, we will solicit competitive bids for purchase of the Bonds from local banks in your area and regional underwriters. We have included an allowance for discount bidding equal to 1.5% of the principal amount of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Certificates are purchased at a price greater than the minimum bid amount (maximum discount), the unused allowance may be used to lower your borrowing amount. Presale Report City of Falcon Heights, Minnesota October 23, 2013 Page 2 Other Considerations: The structure of the bonds is designed with the $45,000 amount budgeted within the City’s preliminary 2014 special levies. The table below shows a projection for future debt levies incorporating this issue: Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no refunding opportunities at this time. We will continue to monitor the market and the call dates for the City’s outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the amount of the Certificates to be issued is less than $1,000,000, this issue could be exempt from the Continuing Disclosure requirements of the Securities and Exchange Commission (SEC). However, some underwriters require limited disclosure as one of the parameters for bidding, therefore we recommend that the City provide for the limited disclosure by agreeing to provide its Audited Financial Statements annually as well as providing notices of the occurrence of certain “material events” to the Municipal Securities Rulemaking Board (the “MSRB”). The City is already obligated to provide such reports for its existing bonds, and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: Because the Certificates are tax-exempt securities/tax credit securities, the City must ensure compliance with certain Internal Revenue Service (IRS) rules throughout the life of the issue. These rules apply to all gross proceeds of the issue, including initial bond proceeds and investment earnings in construction, escrow, debt service, and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds (arbitrage/yield restriction compliance) are common subjects of IRS inquiries. Your specific responsibilities will be detailed in the Nonarbitrage Certificate prepared by your Bond Attorney and provided at closing. We recommend that you regularly monitor compliance with these rules and/or retain the services of a qualified firm to assist you. ‐ 20,000 40,000 60,000 80,000 100,000 120,000 140,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Combined Debt Levies New 2013B 2013A 2010A Presale Report City of Falcon Heights, Minnesota October 23, 2013 Page 3 Proposed Debt Issuance Schedule Pre-Sale Review by City Council October 23, 2013 Distribute Official Statement: Week of October 31, 2013 Conference with Rating Agency: Week of November 4, 2013 City Council Meeting to Award Sale of the Bonds: November 13, 2013 Estimated Closing Date: December 5, 2013 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts Financial Advisors: Shelly Eldridge (651) 697-8504 Nick Anhut (651) 697-8507 Disclosure Coordinator: Pia Troy (651) 697-8556 Bond Sale Coordinator: Alicia Baldwin (651) 697-8523 Financial Analyst: Alicia Gage (651) 697-8551 The Official Statement for this financing will be mailed to the City Council at their home address or e-mailed for review prior to the sale date. City of Falcon Heights, Minnesota $720,000 General Obligation Equipment Certificates, Series 2013B Assumes Current Makret BQ AA-Rated plus 25bps Sources & Uses Dated 12/01/2013 | Delivered 12/01/2013 Sources Of Funds Par Amount of Bonds$720,000.00 Planned Issuer Equity contribution 70,000.00 Total Sources $790,000.00 Uses Of Funds Total Underwriter's Discount (1.500%)10,800.00 Costs of Issuance 28,000.00 Deposit to Project Construction Fund 750,000.00 Rounding Amount 1,200.00 Total Uses $790,000.00 Series 2013 GO Equip Cert | SINGLE PURPOSE | 10/14/2013 | 11:04 AM City of Falcon Heights, Minnesota $720,000 General Obligation Equipment Certificates, Series 2013B Assumes Current Makret BQ AA-Rated plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I 2010 Equip Certs 2013A Bonds Net New D/S 105% of Total 2013A Bond - Assessments Levy/(Surplus) 02/01/2014----71,050.00 3,153.33 74,203.33 77,913.50-77,913.50 02/01/2015 25,000.00 0.700%17,269.58 42,269.58 35,700.00 67,095.00 145,064.58 152,317.81 47,447.92 104,869.89 02/01/2016 80,000.00 0.950%14,627.50 94,627.50-66,645.00 161,272.50 169,336.13 47,447.91 121,888.22 02/01/2017 85,000.00 1.300%13,867.50 98,867.50-71,045.00 169,912.50 178,408.13 47,447.91 130,960.22 02/01/2018 85,000.00 1.650%12,762.50 97,762.50-70,167.50 167,930.00 176,326.50 47,447.91 128,878.59 02/01/2019 85,000.00 2.050%11,360.00 96,360.00-69,127.50 165,487.50 173,761.88 47,447.91 126,313.97 02/01/2020 85,000.00 2.300%9,617.50 94,617.50-67,925.00 162,542.50 170,669.63 47,447.91 123,221.72 02/01/2021 90,000.00 2.600%7,662.50 97,662.50-66,560.00 164,222.50 172,433.63 47,447.91 124,985.72 02/01/2022 90,000.00 2.800%5,322.50 95,322.50--95,322.50 100,088.63-100,088.63 02/01/2023 95,000.00 2.950%2,802.50 97,802.50--97,802.50 102,692.63-102,692.63 Total$720,000.00-$95,292.08$815,292.08$106,750.00$481,718.33$1,403,760.41$1,473,948.43$332,135.38$1,141,813.05 Significant Dates Dated 12/01/2013 First Coupon Date 8/01/2014 Yield Statistics Bond Year Dollars$4,040.00 Average Life 5.611 Years Average Coupon 2.3587149% Net Interest Cost (NIC)2.6260416% True Interest Cost (TIC)2.6350338% Bond Yield for Arbitrage Purposes 2.3438253% All Inclusive Cost (AIC)3.4180271% Series 2013 GO Equip Cert | SINGLE PURPOSE | 10/14/2013 | 11:04 AM